£856m loan could be coming to Europe's indie music companies

Independent music companies could be set to recieve a portion of a €1bn (£855.9m) loan generated by the European Commision.

Word from Midem 2013, which took place in Cannes, France earlier this week, is that the European Commission and its investment fund (EIF) discussed a proposal for a new loan guarantee scheme with independent music companies.

The proposal is expected to be approved this year and would come into effect in January 2014.

Europe is aiming to address a finance gap which restricts growth of smaller actors in the cultural sector.

The discussion was facilitated by IMPALA, the European trade body for independent music companies and included representatives of the banking sector as well as music professionals.

The proposed scheme would make €210m available to guarantee loans, which in turn is expected to generate a total of €1bn in new loans.

Helen Smith, Executive Chair of Impala said: "If this scheme generates the 1bn euros estimated, it could transform the independents' ability to grow and level the playing field."